Mba in a day

438 Planning and Forecasting A Foreign Currency Hedge Suppose an American electronics manufacturer has just delivered a large shipment of finished products to a customer in France. The French buyer has agreed to pay 1 million French francs in exactly 30 days. The manufacturer is worried that the French franc may be devalued relative to the American dollar during that interval. If the franc is devalued, the dollar value of the promised payment will fall and the American manufacturer will suffer losses.

10p ht8287 13-12-2010 87 10   Download